Kathmandu- Apollo Hydropower Limited is set to issue its Initial Public Offering (IPO) from Falgun 11, targeting local residents of project-affected areas and Nepalis employed abroad.
The company has received approval to issue 1.41 million shares worth Rs 141 million, representing 30 percent of its issued capital of Rs 570 million. Of the total shares, 470,000 units have been reserved for residents of project-affected areas. The allocation for locals will be distributed based on impact level, with 50 percent for highly affected areas, 30 percent for moderately affected areas and 20 percent for less affected areas.
In addition, 94,000 units, equivalent to 10 percent of the shares allocated to the general public, have been set aside for Nepalis working abroad.
Applicants must apply for a minimum of 10 units. Local residents can apply for up to 47,000 units, while Nepalis employed abroad can apply for a maximum of 94,000 units. The IPO for project-affected locals will remain open until Falgun 25, and may be extended until Chaitra 10 if undersubscribed. Applications for Nepalis working abroad will close on Falgun 14, with a possible extension until Falgun 25.
Care Rating Nepal has assigned the company a ‘CareNP Double B Minus’ issuer rating, indicating a medium level of risk. Apollo Hydropower is currently operating the 6 MW Buku Khola Hydropower Project, developed at an estimated cost exceeding Rs 1.37 billion.
Himalayan Capital Limited has been appointed as the issue and sales manager for the IPO.
